Where to open shop: New report ranks the best places to do business in the U.S.

The COVID-19 pandemic continues to affect the global economy, and employers are increasingly considering which are the most and least employer-friendly places to open new offices, distribution centers and operational locations, both during the pandemic and after emerging from it. The Arizona State University Center for the Study of Economic Liberty recently released "Doing Business North America 2020" (DBNA), a report analyzing and comparing data indicative of the regulatory context for business activity in a number of metropolitan areas.

Although some of the DBNA project’s analytical factors were outside an employment lawyer’s normal space, employment laws significantly impacted the rankings. Specifically, the DBNA project analyzed variables such as the ratio of annual minimum wage to income per capita, the length of paid or unpaid maternity leave, the number of paid and unpaid sick leave days, average severance pay, and the average amount of paid annual leave.

Little doubt can exist that a wide variety of state and local laws not only impact the ease of doing business, but also the costs and risks of doing business. Employers may wish to consider the following types of laws when determining the best place for a new office, distribution center or other location.